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The Welfare Reform and Work Act 2016, contains provisions which introduce a new rent regime for registered providers of social housing in England. The Act and Regulations give the Secretary of State the power to exempt a local authority fully or partially from their requirements if he considers that the local authority would be unable to avoid serious financial difficulties if it were to comply.
The information contains guidance on the process for obtaining an exemption. There will be an expectation that a local authority should explore thoroughly what it can do to mitigate any financial risk without recourse to an exemption, including looking at all contractual commitments.